Hilton Grand Vacations, Inc. is set to acquire Bluegreen Vacations in a $1.5 billion deal. Hilton Grand, the Hilton-affiliated vacation property operator, said on Monday it has entered into a definitive agreement to acquire Bluegreen for $75 per share in an all-cash deal.
The deal is expected to close in the first half of 2024, subject to customary closing conditions and regulatory approvals.
The acquisition will expand Hilton Grand’s customer reach, offerings and sales locations and establish it as a premier vacation ownership and experiences company.
With a customer base of over 200,000 members, Bluegreen has a “strong track record” of organic growth with strategic partnerships, which will help expand Hilton Grand’s reach and relationship with the Hilton Honors loyalty program, Hilton Grand said in a release.
The transaction will grow Hilton Grand’s membership base from over 525,000 to more than 740,000 and increase its resort portfolio from 150 to around 200 properties across 14 new locations and eight new states. The addition of the new locations, primarily drive-to destinations, will double Hilton Grand’s footprint on the East Coast and grow the number of outdoor and ski destinations while also adding sales distribution in new key markets.
The management team of Hilton Grand, including President and CEO Mark Wang, Chief Financial Officer Dan Mathewes and ChOO Gordon Gurnik, will continue to serve in their existing roles once the deal finalizes.
“Along with our long-standing relationship with Hilton, this highly complementary combination will also unlock additional upside by leveraging the infrastructure we have built over the past few years with the launch of the Hilton Vacation Club brand, our HGV Max membership offering, the HGV Ultimate Access experiential platform. I’m particularly excited about the opportunity to enter into a new relationship with Bass Pro Shops and its actively engaged, loyal community of outdoor enthusiasts,” Mark Wang, president and CEO of Hilton Grand, said.
BASS PRO AGREEMENT
The deal will also grow and diversify Hilton Grand’s lead flow through Bluegreen’s global collaborations, including an exclusive marketing agreement with Bass Pro Shops and its platform for outdoor lifestyle enthusiasts.
Hilton Grand has signed a 10-year exclusive marketing agreement with Bass Pro Shops, the outdoor retail and conservation company.
The partnership will build on Bluegreen’s position as Bass Pro Shops’ official vacation ownership partner and includes the current joint venture encompassing four outdoor-themed resorts.
Currently, Bluegreen has a marketing presence in the majority of Bass Pro Shops while owning 51% of a joint venture.